Exempt Income for NRIs — Know What India Cannot Tax.
Advisory on income exempt from Indian tax for non-resident Indians — account interest, notified investments, treaty positions and the conditions attached to each.
Book Free ConsultationNot every rupee an NRI receives in India is taxable. The Income-tax Act specifically exempts certain categories of income for non-residents — interest on particular types of accounts, income from notified bonds and securities, and other items subject to conditions. Understanding these correctly can materially change the tax outcome.
At N D Savla & Associates, we help non-resident clients identify which of their Indian receipts fall within an exemption, which are taxable, and what evidence is needed to support the position at the time of filing.
Exemptions here are conditional, not absolute. They usually depend on the person continuing to hold non-resident status, on the funds being of a particular character, or on the investment being of a notified class. When status changes, the exemption position changes with it — which is why we review it annually.
Our Exempt Income Advisory Services
Exempt Income Identification
Review of the client's Indian receipts to identify income falling within available exemptions.
Account Interest Review
Assessment of interest on non-resident accounts and the conditions attached to its exemption.
Notified Investment Review
Examination of bonds, securities and other investments carrying a specified exemption.
Status Linkage Assessment
Analysis of how a change in residential status affects the exemption position.
Treaty Position Advisory
Review of the applicable double taxation avoidance agreement alongside domestic exemptions.
TDS Correction Support
Assistance where tax has been deducted on income that is exempt or taxable at a lower rate.
Return Disclosure Support
Correct reporting of exempt income in the return of income.
Documentation & Evidence File
Compilation of the account, investment and status documentation supporting each exemption.
Our How We Assess Exempt Income
Status Confirmation
Residential status for the year is determined, since most exemptions depend on it.
Receipt Mapping
Each Indian receipt is mapped to its source, account type and underlying investment.
Exemption Analysis
Applicable exemptions and their conditions are tested against the facts.
Tax & TDS Reconciliation
Taxable income and deducted tax are reconciled and refund positions identified.
Filing & Documentation
Exempt income is disclosed correctly in the return and the supporting file is retained.
Why It Matters
Frequently Asked Questions
Want to know what is actually taxable in India?
Share your Indian accounts, investments and receipts — we'll map what is exempt, what is taxable and where TDS can be recovered.
